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Advantages of Blockchain



We all know about bitcoin-the buzzword of 2017.It has gathered some serious attention along with bitcoin throughout the world and it is the most trending topic on the internet.

Now let us see how blockchain revolutionizes a business completely.Following are a handful of advantages of blockchain.


1. Efficiency
In Blockchain all the transactions are done directly in between two parties without any involvement of the third party, so transactions take place quickly. Since it is capable to manage ‘smart contracts’ and commercial actions automatically it directly streamlines all processes and remove the cost and time from the transaction.By using blockchain we can make a stock market decentralized.Efforts have already begun towards the same.The Japan exchange group uses blockchain as it’s primary trading component.

2. Fewer intermediaries
Since blockchain is a decentralized network,we don’t need a middleman or a third party.This reduces the cost of operation to a great extent.Also since the client and service provider interact directly with each other it increases trust to a great extent and hence strengthening the foundational element of the business.

3.Authentication of the product
Counterfeit goods have plagued manufacturers and consumers alike; pharma firms lose around $200 billion/year due to spurious drugs, and nearly 1,400 adverse reactions related to spurious drugs have been reported since 2014. Blockchain’s digital registry creates a chain-of-custody log that tracks every step of supply chain process. The company can then provide the consumer with a complete product history, from production line to their purchase, therefore providing certainty in its authenticity




4.Traceability
Information and details related to a particular component and the ability to trace it back till the origin efficiently is what blockchain has offered to mankind.In addition to supply chain management blockchain’s traceability can also be seen in food chain management.Arc-net was the first company to implement food traceability.It is based out of North Ireland.




5.Cost Optimization
Blockchain is proved to optimize cost and time particularly for financial institutions.Reporting cost has been lowered by 30%.According to a report it has also reduced costs to a great extent in various operations related to investment banking such as trade confirmations,reconciliation,cash management,asset management.Banks database are huge and multiple due to which managing the database of the banks becomes a cumbersome task. By putting blockchain into practice,we can minimize the software and hardware costs.
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Location: Mumbai, Maharashtra, India

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